New measures to curb the spread of the virus are expected to reduce the demand for fossil fuels in May.
Oil prices have plummeted as India’s second-largest coronavirus outbreak has shortened its own oil recovery, dampening hopes of a strong boost for developed countries and China in the second half of the year.
Brent futures for July fell 15 cents, or 0.2%, to $ 66.61 a barrel at 02:44 GMT on Monday, while United States West Texas Intermediate June was $ 63.48 a barrel, down 10 cents, or 0.2 percent.
Restrictions on state-of-the-art measures aimed at tackling the disease in India have caused oil sales of the world’s third-largest oil producer to decline in April, early indications.
“Oil prices have dropped by about 7% from COVID before April 2019,” AK Singh, chief marketing officer at Bharat Petroleum Corp, said, adding that India’s demand was close to COVID-19 before March.
Researchers hope that India will need fuel to see a significant reduction in May due to some restrictions.
“As it remains to be seen that COVID-19 in India has not yet reached its peak, we expect it to support more oil in May,” ING researchers wrote.
Sunday, India’s leading organization encouraged government officials to reduce economic activity, as the country is rife with the disease.
With more than 300,000 daily cases that have taken place almost two weeks now, India is facing a crisis second wave of coronavirus which has destroyed its weak and ineffective path.
Hospitals are overcrowded, oxygen supply supplies are running low, mortuaries and crematoriums are full.
With 368,147 new cases in the last 24 hours, the number of coronaviruses in India has now reached 19.93 million, with a total death toll of 218,959, according to a study by the Ministry of Health.
Globally, however, the introduction of the vaccine is expected to raise fuel prices, especially during the crisis in the third quarter, prompting experts to further predict Brent prices in the fifth straight month, a Reuters study found.
A survey of 49 participants states that Brent could be worth about $ 64.17 a barrel in 2021, from last month’s $ 63.12 and $ 62.30 average for the benchmark until this year.
In terms of trade, the Organization of the Petroleum Exporting Countries (OPEC) pumped 25.17 million barrels a day in April, 100,000 barrels starting in March, while Iran and other manufacturers grew. OPEC production increases monthly from June 2020 except February.
Iran and the US are in talks to revive a nuclear deal that could lead to US sanctions that could allow Iran to develop oil.
Washington on Sunday denied Iran’s state television report that its main enemies had reached an agreement with prisoners in exchange for $ 7bn of Iranian oil stored by US sanctions in other countries.
In the U.S., the electronics industry increased oil and gas prices last week, leading to a ninth increase in monthly earnings, as rising prices attracted some investors back to the well, according to Baker Hughes.
However, U.S. crude oil prices fell by more than a million barrels a day in February, the lowest since October 2017, according to a monthly government report on Friday.